Saudi Aramco acquired the trading arm of Motiva Enterprises LLC, the American refining company, as the state oil giant intends to expand its operation in the United States.
In addition, Saudi Aramco announced the establishment of Aramco Trading Americas LLC, a new company that will be based in Houston, Texas, and is expected to become a regional center for the Saudi company’s trading arm.
Aramco Trading Americas LLC shall be the only supplier and buyer for Motiva which owns the U.S. largest oil refinery. Based in Port Arthur, the refinery has a whopping capacity of 630,000 barrels a day.
“The acquisition of Motiva Trading and the establishment of Aramco Trading Americas are a giant step towards executing our ambitious global growth strategy, which aims to expand our geographical reach and scale of operations, while further strengthening our product flexibility and optionality,” said Mohammed K. Al-Mulhim, president and CEO of ATC.
As reported by Bloomberg in October, Saudi Aramco, the world’s largest oil company, is pushing ahead with an IPO of an energy trading unit valued at over $30 billion.
Other national oil companies in the Gulf countries strive to take their trading businesses forward instead of companies who traditionally took a simple oil production and export approach. They now seek to increase profits by shifting to more profitable market areas.
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